Bank Alfalah Exits Afghanistan After Two Decades of Operations

KARACHI: Bank Alfalah has officially exited Afghanistan after 20 years, having sold its assets to Ghaznafar Bank, the bank announced to its shareholders on Friday. The transaction was completed on November 5, following necessary approvals from the State Bank of Pakistan and Da Afghanistan Bank, along with the fulfillment of other regulatory conditions.

The bank’s notification to the Pakistan Stock Exchange confirmed that it has ceased all banking operations in Afghanistan and will proceed with the closure of its branches in accordance with applicable regulatory requirements. Bank Alfalah commenced its operations in Kabul in 2005, providing both conventional and Islamic banking services to the local market.

This exit marks a significant shift in the banking landscape of Afghanistan, reflecting the ongoing economic and political challenges in the region. The move may impact the financial services available to Afghan citizens and businesses, as Bank Alfalah was one of the few foreign banks operating in the country.

Looking ahead, the closure of Bank Alfalah’s operations may lead to further consolidation in Afghanistan’s banking sector, as local banks like Ghaznafar Bank expand their reach. Stakeholders will be closely monitoring the implications of this transition for the Afghan economy and its financial stability.